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Comparison – Contrast Of Best Buy Company, Inc. And Tweeter Home Entertainment Group, Inc. Purpose: To explore similarities or differences between the Best Buy Company, Inc. and Tweeter Home Entertainment Group, Inc. and to analyze and evaluate their systems and methodology utilized in connection with respective inventory valuation method, acquisition and method of depreciation of operational assets, amortization of intangible assets, investments, and liabilities reported on their respective financial statements. Organization: The Best Buy Co., Inc. is a specialty retailer of consumer electronics, home office equipment, entertainment software and appliances comprises of 481 stores in 44 states. They have acquired Future Ltd., Hi Fi, Inc. and Music Land Stores Corporation. All three acquisitions were accounted for using the purchase method. Under this method, the net assets and results of operations of the acquired companies are included in the Best Buy Co., Inc. consolidated financial statements from their respective dates of acquisition. Tweeter Entertainment Group, Inc. is a specialty retailer of mid to high-end audio and video consumer electronics products. They operate 154 stores under the Tweeter, HiFi Buys, Sound Advice, Bang and Olufsen, Electronic Interiors, and others. They operate in a single segment of retailing audio and video consumer electronic products. Their stores feature an extensive selection of home and car audio systems and components, portable audio equipment, and home video products including large screen televisions, DVD players, digital satellite systems, videocassette recorders and camcorders. These two companies are both in retail industry and retail the same majority of audio and video consumer electronics products and are in best candidate for business comparison to this research project Point of Comparison: The point of comparison between these two companies will be identified in different categories reflected and specified on their respective financial statements and notes to financial statements are the following: Inventories The Best Buy, Inc. records their merchandise inventories at the lower of cost or market. Markdown reserves are established based primarily for future consumer demand, inventory aging and technological obsolescence. They take their independent inventory counts on a regular basis at all locations and the primary methods used to determine cost are the average cost and retail inventory method.
Approximate Word count = 1327
Approximate Pages = 5.3
(250 words per page double spaced)
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